Part 9Amalgamations, conversions, dissolution etc

Conversion of company into society

116Conversion of company into a society: member's shareholding in company exceeds maximum permitted amount

(1)

This section applies in relation to a resolution under section 115 where the nominal value of the company's shares held by a member other than a registered society exceeds the amount specified in section 24(1) (maximum shareholding).

(2)

The resolution may provide for the conversion of the shares representing that excess into a transferable loan stock—

(a)

bearing such rate of interest as may be fixed, and

(b)

repayable on such conditions as are determined by the resolution.